Trade

Globalization-related issues.

ITIF Report: The Export-Import Bank is Vital to American Competitiveness

It’s Not Too Late for India’s New Beginning

July 22, 2014
| Blogs & Op-eds

India simply cannot usher in a new, innovative economy that will expand and sustain itself for years to come if it continues to revert back to these same tried-and-failed mercantilist practices.

China Gets November Deadline to Help Restart ITA Talks

South China Morning Post
Beijing's hosting of APEC meeting revives hopes for an agreement to expand scope of tariff cuts.

ICT Innovation Policy in China: A Review

July 21, 2014
| Reports

China is not only a producer of manufactured goods, but it is increasingly a nexus for technological innovation as a growing share of home grown, high-tech companies compete in the global marketplace. The Chinese government sees information and communications technology (ICT) both as a key catalyst for China’s transition from a manufacturing to a knowledge-based economy and as a positive influence in boosting across the board productivity and overall quality of life in China. That is why a decade ago China designated “informatization,” the adoption and enhancement of ICT in every aspect of the economy and society, as a central facet of the nation’s economic modernization strategy.

This report reviews the long-term, mid-term and industry-specific ICT policies China is utilizing to implement informatization and improve its overall international economic competitiveness. This includes the frameworks to enhance innovation and development in the “Internet of Things,” cloud computing and data innovation.

The report concludes by noting that while Chinese policy is moving in the right direction, the nation still has a long way to go to match the ICT policy framework of the United States or Europe. This would include creating policies to attract, rather than compel, ICT foreign direct investment, while reforming existing regulations and requirements to ensure domestic and foreign firms are operating on a level playing field.

The Role of Trade and Technology in 21st Century Manufacturing

July 17, 2014
Stephen Ezell discussed the impact of U.S. trade policy on American manufacturing in testimony before the Senate Finance Committee.

Stephen Ezell discussed the impact of U.S. trade policy on American manufacturing in testimony before the Senate Finance Committee.

Over the past six years (FY 2008 to FY 2013) China has invested twice as much in new, medium and long-term export credit as the U.S. in current dollars, and almost four times as much as a share of GDP over this period.

Despite the critical role export credit financing plays in helping to boost America's exports and empower its traded sector competitiveness, virtually all U.S. competitors are investing significantly more as a share of their GDP than the U.S. in providing export credit assistance in the form of loans and guarantees to help foreign buyers purchase their nations' products and services. This scenario reduces overall American competitiveness and enhances the movement of industrial investment to other nations. Read more »

Foreign Export Credit Competition Continues to Intensify as U.S. Competitiveness Wanes

July 1, 2014
| Blogs & Op-eds

Amidst continuing debate regarding the role of the U.S. Export-Import Bank, the 2014 Report to the U.S. Congress on Export Credit Competition provides fresh evidence that foreign export credit competition continues to intensify even as U.S. competitiveness at providing export credit assistance continues to weaken compared to leading competitor nations. As a share of GDP, competitors such as China and Germany are investing five to seven times more in export credit assistance than the United States, while Korea invests fourteen times more. Meanwhile, over the past six years, China has invested twice as much in export credit as the United States in current dollars, and almost four times as much as a share of GDP. Moreover, the majority of foreign export credit competition is now occurring outside of guidelines promulgated by the Organization for Economic Cooperation and Development (OECD) to regulate fair competition in the use of export credit a mong nations in a way that ensures that global export competition is based on free-market principles and mutually agreed-upon standards. Such data reaffirms the important and much-needed role the U.S. Export-Import Bank plays in providing export credit assistance to help finance the exports of U.S. products and services.

A Vote Against the Ex-Im Bank is a Vote Against U.S. Manufacturers

July 1, 2014
| Blogs & Op-eds

Congress is set to vote on reauthorization of the Export-Import bank this year, its current authorization expires on September 30. Unfortunately, the agency, which provides financing and insurance for foreign purchasers of U.S. exports, has come under fire from “populists” on the left and right who argue the bank is an example of “crony capitalism.” However, given the positive impact the agency has on American exports and traded sector industries a vote against the bank is a vote against U.S. jobs.

Countries should step-up enforcement of existing trade agreements related to clean energy.

While new trade agreements for clean energy are needed, enforcing existing free trade agreements within the WTO framework is critical to combating rampant green mercantilism. For the United States this means increasing funds for the U.S. Trade Representative to expand capabilities to focus on unfair clean tech trade practices. For other free-trade based countries this means making it a national policy to bring cases to the WTO whenever free trade violations are made and even if the clean energy industry doesn’t initiate the case. In the short term, countries should combat green mercantilism with tariffs on mercantilists’ products.
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